Another Nanny Overtime Lawsuit

Actor Robert DeNiro and his wife Grace Hightower are the players in the most recent high-profile lawsuit by a former nanny alleging that she was not properly compensated for overtime while in their employ.

Nanny compensation is covered by the Fair Labor Standards Act. The FLSA governs such items as minimum wage and overtime payment rules. These rules apply to any domestic - whether working as a nanny, housekeeper, maid, butler, or personal assistant. Any nanny who does not reside with her employer is entitled under law for compensation at the rate of 150% of the regular hourly wage for hours worked over 40 in a week. The Washington Redskins' Daniel Snyder lost a similar suit in March 2007 and was ordered to pay $44K in back unpaid wages.

How can a nanny employer protect themselves from this type of suit?

1. Always spell out the nanny compensation agreement in hourly wage terms in a written work agreement.
   
2. Keep accurate and contemporaneous time tracking records.
   
3. Always pay your live out* nanny 150% of her hourly wage (time and one half) for hours worked over 40 in a week.

The free Hourly Pay Rate Calculator at HomeWork Solutions' 4nannytaxes.com website will translate the desired weekly payment into appropriate hourly rate terms compliant with Federal and State law - an invaluable tool for hiring families.


~~~~~~~~~~
* Some states extend the Federal overtime rules to live in domestics.